外文翻译----商业银行风险管理(编辑修改稿)

外文翻译----商业银行风险管理(编辑修改稿)内容摘要：

he postliberalization period. 3. Studying relationship between diversified portfolio and nonperforming assets of public sector banks vis224。 vis private sector banks. 4. Profiling and analysis of concentration risk in public sector banks vis224。 vis private sector banks. 5. Evaluating the credit risk management practices in public sector banks vis224。 vis private sector banks. 6. Reviewing the New Basel Capital Accord norms and their likely impact on credit risk management practices of Indian mercial banks. 7. Examining the role of Risk Based Supervision in strengthening credit risk management practices of Indian mercials banks. 8. Suggesting a broad outline of measures for improving credit risk management practices of Indian mercial banks. 2. THE PROBLEM OF NONPERFORMING ASSETS Introduction: Liberlization and Globalization ushered in by the government in the early 90s have thrown open many challenges to the Indian financial sector. Banks, amongst other things, were set on a path to align their accounting standards with the International standards and by global players. They had to have a fresh look into their balance sheet and analyze them critically in the light of the prudential norms of ine recognition and provisioning that were stipulated by the regulator, based on Narasimhan Committee remendations. Loans and Advances as assets of the bank play an important part in gross earnings and profits of banks. The share of advances in the total assets of the banks forms more than 60 percent7 and as such it is the backbone of banking structure. Bank lending is very crucial for it make possible the financing of agricultural, industrial and mercial activities of the country. The strength and soundness of the banking system primarily depends upon health of the advances. In other words, improvement in assets quality is fundamental to strengthening working of banks and improving their financial viability. Most domestic public sector banks in the country are expected to pletely wipeout their outstanding NPAs between 2020 and 20208. NPAs are an inevitable burden on the banking industry. Hence the success of a bank depends upon methods of managing NPAs and keeping them within tolerance level, of late, several institutional mechanisms have been developed in India to deal with NPAs and there has also been tightening of legal provisions. Perhaps more importantly, effective management of NPAs requires an appropriate internal checks and balances system in a bank9. In this background, this chapter is designed to give an outline of trends in NPAs in Indian banking industry vis224。 vis other countries and highlight the importance of NPAs management. NPA is an advance where payment of interest or repayment of installment of principal (in case of Term loans) or both remains unpaid for a period of 90 days10 (new norms with effect from 31st March, 2020) or more. Trends in NPA levels: The study has been carried out using the RBI reports on banks (Annual Financial Reports), information / data obtained from the banks and discussion with bank officials. For assessing parative position on CARR, NPAs and their recoveries in all scheduled banks viz., Public sector Banks, Private sector banks were perused to identify the level of NPAs. The Table lists the level of nonperforming assets as percentage of advances of pubic sector banks and private sector banks. An analysis of NPAs of different banks groups indicates, the public sector banks hold larger share of NPAs during the year 199394 and gradually decreased to percent in the year 2020. On the contrary, the private sector banks show fluctuating trend with starting at percent in the year 199495 rising upto percent in year 1998 and decreased to percent in the year 202003 International parison of NPA levles: Comparison of the problem loan levels in the Indian banking system vis224。 vis those in other countries, particularly those in developed economies, is often made, more so in the context of the opening up of our financial sector. The data in respect of NPAs level of banking system available for countries like USA, Japan, Hong Kong, Korea, Taiwan amp。 Malaysia reveal that it ranged from 1 percent to percent during 199394, percent to percent during 199495, to percent during 2020 as against percent, percent and 14 percent respectively for Indian banks during this year11. The NPAs level in Japan, for example is at percent of total loans, it is percent in Hong Kong, percent in Thailand, percent in Indonesia, and percent in Malaysia during 9495, whereas the corresponding figure for India is very high at percent12. According to Ernst amp。 Young13, the actual level of NPAs of banks in India is around $40 billion, much higher than the government own estimates of $ billion 14 . This difference is largely due to the discrepancy in the accounting of NPAs followed by India and rest of the world. According to Ernst amp。 Young, th。